Cocoa Prices Rebound After Bullish Production Data
December 11 2017 - 3:07PM
Dow Jones News
By Amrith Ramkumar
Cocoa prices bounced back Monday after falling to their lowest
level since August last week.
Futures for March delivery rose 1.3% to $1,912 a ton, climbing
back above the key $1,900 psychological and technical level.
Recent data on cocoa from the Ivory Coast arriving at ports was
low, indicating less production from one of the world's largest
producers, said Peter Mooses, a senior market strategist at RJO
Futures in Chicago. Concerns that the market will be well-supplied
had weighed on cocoa in recent sessions.
Still, Mr. Mooses says he doesn't think prices will sustain a
move above $1,900 unless more bullish data is released.
"$1,900 is going to be that tough level we're going to have to
get over again," he said. "It's been like a magnet, where we see
that sideways trading."
For the year, prices have fallen roughly 10%, with analysts
attributing recent losses to traders selling after overestimating
demand for the main ingredient in chocolate.
In other markets, arabica coffee for March declined 2.1% to
$1.200 a pound. March raw sugar shed 0.7% to 13.95 cents a pound,
January frozen concentrated orange juice was down 1.2% at $1.51 a
pound and March cotton fell 1.2% to 72.86 cents a pound.
--Write to Amrith Ramkumar at amrith.ramkumar@wsj.com
(END) Dow Jones Newswires
December 11, 2017 14:52 ET (19:52 GMT)
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